penalties For Illicit Activities
It has come to the notice of the Department that some depot owners are selling PMS to unlicensed bulk buyers and some retailers at prices above the approved ex-depot prices. We have also noticed that some retail outlets hoard PMS or sell at above the industry-set cap price.
- These actions are clear violations of the Petroleum Act 1969 and extant Regulations and they exacerbate the current supply challenges by bringing unnecessary hardships on the consumers.
3. Sequel to the foregoing, The Department has been sanctioning the erring operators and wishes to hereby reiterate that the following penalties would be imposed on any operator engaging in illicit acts as applicable:
- Depots selling PMS to bulk buyers without verifiable retail outlets — A fine of Ten Million Naira and closure of the erring Depot for at least six months, after the products in the Depot have been sold off.
- Selling PMS above approved ex-Depot Price — A fine of Twenty Million Naira, closure of the erring Depot for at least three months. PPMC shall also exclude the erring Depot from Coastal supply allocation for at least a period of one (1) calendar year.
- Hoarding at Retail Outlets --- A fine of N200.00 per litre would be imposed on the hoarded product and the erring station would be closed for at least six months. In addition, the recovered product would be auctioned off free to the public.
- Selling above the price cap at Retail Outlets --- Six-month closure of the erring station. Product being sold above the cap price would be auctioned off to the public.
4. Operators are to note the foregoing and be advised accordingly.
5. We are also assuring the public that the government is doing everything to ensure restoration of normalcy to the Sector.
Zonal Operations Controller, Lagos
December 18, 2017